The recent decline in GBP / USD was related to the increase in the yield on 10-year bonds in the US. The discount was quite solid. Looking at the general market sentiment, the dollar is fundamentally weak. In the near future, I will be looking for long positions after this discount, according to the 3 scenarios shown in the chart below.
I will especially observe the price behavior at 1.38988 and 1.38603. What risk to take? I never go in with the whole position. If I want to place 0.5 lots on the buy, I will place 0.25 in the current position, if the price drops to average at the second, attractive for me price (1.38603), 0.25 lots. The potential premium will be greater, and the risk associated with changing the trend.
Edited 30 Apr 2021, 19:34
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